Tilly's, Inc. (TLYS) Q2 FY2026 earnings

Reported results

• Total net sales were $163.5 million, an increase of 8.1%, with comparable net sales (physical stores and e-commerce combined) increasing by 12.1%.
• Gross profit was $58.1 million, or 35.5% of net sales, an improvement of $9.0 million or 300 basis points compared to $49.1 million, or 32.5% of net sales, in Q2 FY2025.
• Operating income improved to $8.2 million, or 5.0% of net sales, compared to $2.7 million, or 1.8% of net sales, in Q2 FY2025.
• Net income (GAAP) was $8.4 million, or $0.27 per diluted share, compared to $3.2 million, or $0.10 per diluted share, in Q2 FY2025.
• E-commerce net sales were $34.5 million, an increase of 20.9%, and represented 21.1% of total net sales compared to 18.9% in Q2 FY2025.
• Store count at end of Q2 FY2026 was 220 stores, a decrease of 12 stores or 5.2% compared to 232 stores at end of Q2 FY2025.

Guidance

• Q3 FY2026 (ending October 31, 2026) net sales estimated in the range of approximately $150 million to $155 million, translating to estimated comparable net sales increase of 10% to 14%.
• Q3 FY2026 product margins estimated to be slightly improved compared to Q3 FY2025.
• Q3 FY2026 SG&A expenses estimated at approximately $47 million to $49 million.
• Q3 FY2026 estimated effective income tax rate in the low to mid-teens as a percentage of pre-tax income.
• Q3 FY2026 net income estimated at approximately $2.2 million to $3.7 million, and net income per diluted share of $0.07 to $0.12, based on approximately 32.0 million diluted shares.
• Company expects 220 stores open at end of Q3 FY2026 compared to 230 at end of Q3 FY2025.
• Company expects to end Q3 FY2026 with total liquidity of approximately $125 million or more, comprised of cash and investments of approximately $62 million to $65 million and available, undrawn borrowing capacity of approximately $63 million.

Notes

First half FY2026 results (twenty-six weeks ended August 1, 2026): Total net sales were $288.2 million, an increase of 11.3%, with comparable net sales increasing by 16.5%. Operating income was $75 thousand, or 0.0% of net sales, compared to an operating loss of $(20.0) million, or (7.7)% of net sales, in first half FY2025. Net income (GAAP) was $0.4 million, or $0.01 per diluted share, compared to a net loss of $(19.0) million, or $(0.63) per share, in first half FY2025. Balance sheet shows total available liquidity of $125.5 million as of August 1, 2026, comprised of $62.2 million in cash, cash equivalents, and marketable securities and $63.3 million of available undrawn borrowing capacity. The company notes continuing impact of a full, non-cash deferred tax asset valuation allowance affecting tax rates.

Price and volatility reaction

Source

The figures above come from the earnings release the company filed with the SEC on 2026-09-02 (8-K, Item 2.02). Read the original filing on sec.gov.